11th
May 2022
Yesterday’s Queen’s Speech outlined the government’s intentions to ‘reform’ the private rented sector for landlords and tenants with a few brief details included in the Lobby Pack briefing notes published following the parliamentary event.
However two of the most contentious issues (besides scrapping Section 21 notices) is ‘lifetime deposits’ which looks to be placed at the back of queue and a national landlord register for England which failed to be mentioned at all; both were to be part of the original Renters Reform Bill proposals.
Apparently lifetime deposits are too problematic for the government to introduce so Ministers will be leaving it to the sector to come up with a similar type of ‘deposit passport’; regarding the national landlord register the government is proposing to implement an official list of PRS properties instead.
As expected the government once again reiterated its three year old pledge to scrap Section 21 ‘no fault’ evictions, however it will be changing ‘possession grounds for landlords, introducing new and stronger grounds for repeated incidences of rent arrears and reducing notice periods for anti-social behaviour, ensuring that they can regain their property efficiently when needed’.
In the briefing notes there are some items which have already been proposed or announced and include a soon to be new regulation - Decent Homes Standard - for the PRS, a new mandatory redress process for tenants versus landlords disputes through an ombudsman scheme.
The government will be introducing a new property portal to ‘help landlords understand their obligations’, ‘give tenants performance information to hold their landlord to account’ and will also be ‘aiding local authorities’.
Although many are welcoming the government for upholding its pledge in making major reforms to the private rented sector, there are some who are still critical of the Tory’s for taking so long to get their act together since 2019.
Jeremy Leaf a north London estate agent, says: ‘There is no point in frightening off landlords or tenants and trying to find a balance between the two is key.
“The Government has discussed getting rid of Section 21 for a while so that comes as no surprise.
“But it is important to create a balance between landlords and tenant because we don’t want supply to be reduced unnecessarily and nor do we want to retain tenants who are in serious arrears or displaying anti-social behaviour, which is upsetting other people in and around the property.”
Timothy Douglas Head of Policy and Campaigns for an industry organisation says: “The measures proposed for the private rented sector in the Queen’s Speech will have a significant impact on letting agents, their landlords and therefore tenants in England.
“What we need to see is balance throughout the possession and court processes to ensure that agents and landlords have efficient access to regain possession when justified. Letting agents are already well versed in dispute resolution, making them a pivotal part that could prove to be more efficient than the introduction of a new property portal.
“An introduction of legally binding standards of property across the rented sector is welcome in principle, but legislators must understand what is possible across a variety of property types which exist in the private rented sector.”
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